HP Inc. Reveals Plans For Up To 4,000 Job Cuts In Next Three Years

HP Inc. plans to cut up to 4,000 jobs across multiple divisions in the next three years as part of a restructuring plan, the company disclosed in a filing on Thursday.

HP Inc.'s restructuring plan, which comes as the company grapples with a sluggish demand for PCs and printers, will save it about $200 million to $300 million beginning in fiscal 2020, according to the filing. The company's stock dropped almost 2 percent in after hours trading.

"Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of graphics and manufacturing through our leading 3D printing solutions," said HP Inc. President and CEO Dion Weisler, in a statement.

[Related: Microsoft Inks Six-Year Deal With HP Inc. For Dynamics CRM]

Sponsored post

HP Inc., formed after the breakup of Hewlett-Packard Co. about a year ago, is trying to find ways to drive profitability beyond PCs – including commercial mobility and services, as well as disrupting the 3D printer market. The announcement of impending job cuts comes after market research firm IDC said that the PC market is facing a 3.9 percent year-over-year decline in the third quarter of 2016.

Doug Grosfield, the founder and CEO of Five Nines IT Solutions, a Kitchener, Ontario-based strategic service provider, said that the job cuts would help the Palo Alto, California company form a stronger focus on more profitable lines of business.

"HP has made such changes at many levels within the tech behemoth's organization," Grosfield wrote to CRN in an email. "Proof of the value of these strategic changes is evident in the larger dividend checks written to stakeholders this year, and also to the partner channel with the clearer boundaries between business units. Stronger focus on lines of business will result, as will lower overheads due to redundancies in the workforce."

"HP is not alone in terms of significant restructuring efforts in the tech space these days, but they are certainly more aggressive than most," he added.

In addition to job cuts, HP Inc. announced it expects adjusted profits for fiscal 2017 to be in the range of $1.55 to $1.65 a share. HP Inc. employs about 50,000 people, according to the company's website.